Guideline for Tuesday

NQ traded sideways in a very narrow trading on Monday, a consolidation day following a large gap-up day. Once it ends NQ should rally back up again, as long as key support hold on any potential further pullback-down move.

Key inflection price level for NQ on Tuesday is 4163.

-- Above 4163 is an indication uptrend has resume, target is higher-high above Monday swing high, upside target is still 4200.

-- NQ is still in a pullback mode below 4163, key support is 4135. Should 4135 support is clearly broken, it is likely to trigger algo sell programs that could take NQ down to 4115 or 4100 support.

Guideline For Monday

On Friday last week, on the back of the Fed's back-door QE via the Bank of Japan QE and massive overnight buying binge by the Fed algo buyers, the stock market was pushed up substantially higher by the opening bell while precious metals such as gold and silver were whacked really hard, just to paint a healthy economic outlook post QE.

With the US mid-term election this coming week it is a certainty that the Fed would continue to push the equity market up while whacking the precious metal market down, and they will come in to buy any attempted sell-off attempt by the short-sellers. As long as no major technical damage is inflicted by the sellers, look for the current uptrend to continue.

Key price inflection level for NQ on Monday will be 4145, key support is 4135, strong support at 4100.

-- Above 4145 is an indication NQ is still in a fast mode up, next target will be 4200, whether it will get there in one day or two only time will tell.

-- Trading below 4135 could trigger algo sell programs, but strong support resides at 4100, and should hold. But as always, anything is possible, particularly with the extremely manipulated market conditions we are currently in.

Guideline For Friday - NQ

On Thursday the market opened with a bearish bias, but relentless buying by the Fed buy programs pushed the market up, NQ just stopped shy of the prior swing high before seller came in and sold it hard, but another rounds of buy programs managed to push NQ back up to close near the high of the day.

With the Fed determined to hold the market up just to show that ending QE would not harm the market look for the buy programs to come in on any attempted sell-off. Whether or not they are able to hold the market up and even push it higher and higher, against global credit contraction, only time will tell.

Key price level for NQ on Friday is 4100.

-- Trading above 4100 is bullish, look for NQ to continue going higher.

-- NQ may try to sell-off again below 4100, supports are 4060, 4045, 4025.

Guideline For Thursday

NQ traded sideways on Wednesday and stayed choppy even after the FOMC minutes was released, but it looks ready to make a sustained trending move from here, the direction is still not clear simply because the market is manipulated and the Fed will continue to buy the market against strong selling pressure as global credit contraction continues to intensify.

Key price level for NQ remains 4080.

-- Bullish above 4080, next resistance is still 4115. A false-break could cause a fast reversal back-down, while a sustained break above 4115 could trigger a sustained short-covering rally

-- Bearish below 4080, supports are 4065, key support is 4040-4045. Trading below 4040 is an indication the uptrend may have reverse, and could potentially drop really fast, if so first target down is 3940.

Guideline For Wednesday

On Tuesday NQ opened with a large gap-up that successfully triggered a short-covering rally lasting all day into the close, with small lunch pullback.

On Wednesday, ahead of the FOMC policy announcement in the afternoon anything can happen, but the normal pattern ahead of the FOMC announcement is usually choppy with a slight bullish bias. 

However, Wednesday FOMC announcement is not a normal one, the big decision is whether to end QE or not to end QE. But whatever their decision may be, the Fed would be ready to support the market with buy programs.

Key inflection price level on Wednesday will be 4080

-- NQ should continue to rally above 4080, next resistance to break is 4115 swing high.

-- Trading below 4080 is an indication NQ is going into another pullback mode, key support is 4045. A sustained break below 4040 could trigger algo sell programs, next support is 4025 and 4000.

Guideline For Tuesday

On Monday, NQ traded sideways, slightly to the bullish side, ahead of the FOMC policy decision announcement on Wednesday, still unable to clearly breakout above 4040 key resistance zone. 

Whether or not it would breakout before the FOMC announcement on Wednesday, only time will tell, but the momentum of the current rally is slowing down, and it could be a setup for the next breakout to the upside or a prelude to a larger pullback down, so going forward the key price level is still 4040.

The Fed would likely be ready with major buy programs after their policy announcement, in which case the market would spike higher breaking above breakout level, unless of course their buy programs get overwhelmed by the sellers.

Cycle high on the daily chart will be on Thursday October 30th this week, the day after the FOMC announcement, and it could produce a spike high followed by a fast reversal down. Failure to produce a reversal is bullish, and could produce a sustained fast move to the upside.

Key price level remains 4040.

-- A sustained breakout above 4040 could trigger short-covering rally targeting a test or a break of the 4115 swing high on the daily chart.

-- Failure to break and stay above 4040 could attract short-selling, supports are 4020, 4000, 3980, 3940

Guideline For NQ on Monday

Relentless buy programs by the Fed engineered to squeeze the shorts continued on Friday, with NQ closing at the day high of the day at around triple-top price zone (October 3 & 8 high).

There should be many stoploss hiding just above 4040 triple-top price level, a very tempting level for the buyers to push above those level inorder to trigger another round of short-covering rally. At the same time, 4040 is certaintly a strong resistance level that has the potential to halt the current rally and reverse price back down.

So, for Monday 4040 will be a key price level to watch for.

--  Above 4040 is likely to trigger short-covering rally, next target us is September 19 swing high, 4115 area.
-- Inability to break and or stay above 4040 area could attract some short-sellers, supports are 4000 and 3980.

NQ Guidelne For Friday

NQ opened with a huge gap-up on Thursday morning, rallied up to the .786 retracement level, a 7-wave rally from the recent low, before stalling and pullback down to 4000 support..

Absent any major buy programs from the Fed, NQ should continue to drop down further on Friday to support 3975-3980, if that does not hold, then down to 3930-3940. 

However, a sustained break above 4025 could trigger another round of short-covering rally, targeting September 19 swing high.

Guideline For NQ on Thursday

On Wednesday, NQ finally had a pullback down day, ending a 4-day rally from October 16 swing low. The rally from last week Thursday low into Wednesday swing high had a 5-wave structure on the 60-minute chart. 

Whether or not NQ will get more than a 5-wave structure (rally), only time will tell, but to do so, NQ would need to stay above 3930 support in order to avoid overbalancing, and should rally into higher high very soon. Failure to make a higher high could indicate that a larger pullback-down is in progress, implies another wave down is likely.

Key inflection price level for NQ on Thursday is 3960.

-- Above 3960 is an indication that the current uptrend is resuming.

-- Below 3960 implies another down-leg is likely, next support is 3930.

-- Breaking below 3930 is liley to trigger algo sell programs, target down is 3895-3900

Guideline For Wednesday

On Tuesday, as expected, the Fed buy programs caused the markets to open with a huge gap-up, with NQ opening above first resistance and rallied, broke above strong resistance, and continued on to rally all day, again with a close at the high of the day.

The Fed buy programs should continue, with or without a paused, designed to run-over all the trailing stop-losses. However, once all stop-losses has been exhausted, the market will need more than just buy programs and short-covering to continue to push the market higher, the market would need genuine buying interest.

Key resistance to break is now 4000.

-- Failure to clearly break above 4000 could attract short-sellers, support is at 3930.

-- Breaking above could result in another large up-day on Wednesday, next resistance is 4050.